Energy efficiency of UK homes
Improving energy efficiency can help reduce energy bills, cut carbon emissions and improve energy security. How is the UK doing with efforts to increase energy efficiency?
This paper answers FAQs on new government support schemes for energy bills, including: the Energy Price Guarantee, Energy Bills Support Scheme, Energy Bills Discount Scheme, Energy Bill Relief Scheme and Alternative Fuel Payments.
Constituency casework: Government support for energy bills (454 KB , PDF)
This briefing covers the universal energy bill support schemes introduced by the Government in 2022 and 2023 to help households and businesses with rising energy prices, as part of its wider support with the rising cost of living. It provides a guide to relevant sources that answer frequent questions on the schemes.
Where complex issues are raised it may be more appropriate to refer constituents to specialist bodies and organisations or to a solicitor if legal advice is sought.
The Library briefing Help with energy bills (March 2019) provides information on pre-existing, targeted support schemes for households such as the Winter Fuel Payments, Cold Weather Payments and Warm Home Discount.
This briefing covers the support schemes listed below. Constituents may be eligible for multiple schemes, depending on their circumstances. The “quick guide” tables at the bottom of this landing page provide a reference to help identify which schemes are relevant to any given constituent.
The Energy Prices Act 2022 created powers to set up, or deliver aspects of, each of these schemes. For more information see the Library briefing on the Energy Prices Bill 2022-23.
The guidance documents referred to in this briefing are current at the time of writing. However, information on the new schemes is being updated frequently, so it is advisable to check the relevant websites, particularly the Department for Energy Security and Net Zero (DESNZ), for updates.
The Government’s Help for Households website has advice on actions that households can take to cut their energy use and save money this winter. Its webpage on Help with your energy bills has links to various cost of living and energy bill support schemes.
The following Library briefings provide more information on energy bills and wider support available to help constituents with these:
The tables below provide a reference to help you identify which of the support schemes covered by this briefing are likely to be relevant for any given household (Table 2) or non-domestic constituent (including businesses, charities and public sector organisations) (Table 3).
The key to scheme abbreviations (Table 1) gives directions to the relevant sections of this briefing for each scheme.
Table 1 Key to scheme abbreviations |
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Abbreviation | Name of scheme | Where to find information in this briefing |
AFP | Alternative Fuel Payments | Section 6 |
AFP AF | Alternative Fuel Payments Alternative Fund | Section 6.1 |
AFP (PTR) | Alternative Fuel Payments (pass through requirements) | Sections 6 and 7 |
EBDS | Energy Bill Discount Scheme | Section 4 |
EBRS | Energy Bill Relief Scheme | Section 5 |
EBRS (PTR) | Energy Bill Relief Scheme (pass through requirements) | Sections 5 and 7 |
EBRS NSC | Energy Bill Relief Scheme for non-standard customers | Section 5.3 |
EBSS | Energy Bills Support Scheme | Section 3 |
EBSS (PTR) | Energy Bills Support Scheme (pass through requirements) | Sections 3 and 7 |
EBSS AF | Energy Bills Support Scheme Alternative Funding | Section 3.2 |
EPG | Energy Price Guarantee | Section 2 |
EPG (PTR) | Energy Price Guarantee (pass through requirements) | Sections 2 and 7 |
ND AFP | Non-domestic Alternative Fuel Payments | Section 6 |
ND AFP (PTR) | Non-domestic Alternative Fuel Payments (pass through requirements) | Sections 6 and 7 |
Table 2 Support schemes for households: to identify all schemes that may be relevant for your constituent, please review all of questions 1-4 |
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Question | Answer | Relevant schemes |
1. Does the constituent live in Northern Ireland? | Yes | EBSS AFP See also Qs 2-4 |
No | n/a See Qs 2-4 |
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2. How does the constituent pay for their electricity? | They pay a licensed energy suppliera directly, and they have a domestic electricity supply contract | EBSS EPG |
They pay a licensed energy suppliera directly, but they have a non-domestic electricity supply contract. (This may be the case for constituents who share one electricity supply for their home and their business.) | EBSS AF EBRS (until 31/3/2023) EBDS (from 1/4/2023) |
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They pay a third party intermediary (e.g. a landlord) and the intermediary has a domestic electricity supply contract. | EBSS (PTR) EPG (PTR) |
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They pay a third party intermediary (e.g. a landlord, park site owner, university halls of residence, or ‘private wire’ electricity network) and the intermediary has a non-domestic electricity supply contract. | EBSS AF EBRS (PTR) (until 31/3/2023 Consultation on further support expected summer 2023b |
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They do not have an electricity supply linked to the national electricity grid. (Some constituents may be off the electricity grid, e.g. those living on canal boats or in very remote areas.) | EBSS AF | |
3. Does the constituent have a mains gas supply, and if so, how do they pay for it? | Yes, and they pay a licensed energy suppliera directly for a domestic gas supply contract | EPG |
Yes, and they pay a licensed energy suppliera directly, but they have a non-domestic gas supply contract. (This may be the case for constituents who share one gas supply for their home and their business.) | EBRS (until 31/3/2023) EBDS (from 1/4/ 2023) |
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Yes, and they pay a third party intermediary (e.g. a landlord) and the intermediary has a domestic gas supply contract. | EPG (PTR) | |
Yes, and they pay a third party intermediary (e.g. a landlord, park site owner, university halls of residence, or communal network) and the intermediary has a non-domestic gas supply contract. | EBRS (PTR) (until 31/3/2023) Consultation on further support expected summer 2023b |
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No, they do not have a mains gas connection. | n/a | |
4. What is the main way that the constituent heats their home? | Electricity (e.g. with electric heaters or a heat pump) | See Q2 |
Mains gas (e.g. with a gas boiler) | See Q3 | |
Heat network, where this is fuelled by electricity or gas | EBRS (PTR) (until 31/3/2023)b New support will be introducedc |
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Heat network, where this is fuelled by an “alternative fuel” eg: heating oil (kerosene) or biomass (wood-based fuels such as wood pellets) | ND AFP (PTR) | |
An “alternative fuel”, where they purchase this from the fuel supplier directly. Alternative fuels include: heating oil (kerosene), liquified petroleum gas (LPG), coal, biomass (wood-fuel or biogas). | AFP (if they have a domestic electricity supply contract) AFP AF (if they do not) |
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An “alternative fuel”, where they purchase this from an intermediary (e.g. landlord). Alternative fuels include: heating oil (kerosene), liquified petrolum gas (LPG), coal, biomass (wood-fuel or biogas). | AFP (PTR) or ND AFP (PTR) depending on the support received by the intermediary | |
Notes: | ||
a. A licensed energy supplier is an electricity or gas supplier which holds a licence from Ofgem to supply domestic or non-domestic customers, or both. This includes well-known retail energy companies such as the “big five” energy companies (British Gas, EDF, E.ON, Scottish Power, Ovo), as well as smaller energy suppliers such as Octopus Energy and Boost Energy. Third party intermediaries (for example, a park site owner, a landlord or a heat network) are not usually licensed energy suppliers. Instead these intermediaries usually buy energy from a licensed supplier, and then sell it on to the end users. | ||
b. In the 2023 Spring Budget, the Government announced it is developing new support for households on a non-domestic meter where they face lower levels of support than other domestic consumers. It announced DESNZ will issue a call for evidence on this before the summer. | ||
c. In the 2023 Spring Budget, the Government announced heat network customers on non-domestic heating contracts will receive a new, sector specific support rate to ensure they do not face disproportionately higher energy bills than consumers under the EPG. It has yet to announce further details. |
Table 3 Support schemes for non-domestic customers (including businesses, charities and public sector organisations): to identify all schemes that may be relevant for your constituent, please review both questions 5 and 6 |
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Question | Answer | Relevant schemes |
5. How does the constituent pay for their electricity and/or gas? | They pay a licensed energy suppliera, and they have a non-domestic electricity/gas supply contract | EBRS (until 31/3/2023) EBDS (from 1/4/ 2023) |
They pay a licensed energy suppliera, but they have a domestic electricity/gas supply contract. (This may be the case for some microbusinesses.) | EBSS EPG |
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They pay a third party intermediary (e.g. a landlord, heat network, or ‘private wire’ electricity network) and the intermediary has a non-domestic electricity/gas supply contract. | EBRS (PTR) (until 31/3/2023) | |
They take their energy from the public electricity/gas grid, but they pay an unlicensed provider or they participate in the wholesale market directly | EBRS NSC (until 31/3/2023) EBDS (from 1/4/ 2023) |
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6. What is the main way that the constituent heats their property? | Electricity (e.g. with electric heaters or a heat pump) | See Q5 |
Mains gas (e.g. with a gas boiler or a combined heat and power (CHP) plant) | See Q5 | |
Heat network, where the heat network is fuelled by electricity or gas | EBRS (PTR) (until 31/3/2023) | |
Heat network, where the heat network is fuelled by an “alternative fuel”, for example: heating oil (kerosene) or biomass (wood-fuel or biogas) | ND AFP (PTR) | |
An “alternative fuel”, where they purchase this from the fuel supplier directly. Alternative fuels include: heating oil (kerosene), liquified petroleum gas (LPG), coal, biomass (wood-fuel or biogas). | ND AFP | |
An “alternative fuel”, where they purchase this from an intermediary (e.g. landlord). Alternative fuels include: heating oil (kerosene), liquified petroleum gas (LPG), coal, biomass (wood-fuel or biogas). | ND AFP (PTR) | |
Notes: | ||
a. A licensed energy supplier is an electricity or gas supplier which holds a licence from Ofgem to supply domestic or non-domestic customers, or both. This includes well-known retail energy companies such as the “big five” energy companies (British Gas, EDF, E.ON, Scottish Power, Ovo), as well as smaller energy suppliers such as Octopus Energy and Boost Energy. Third party intermediaries (for example, a park site owner, a landlord or a heat network) are not usually licensed energy suppliers. Instead these intermediaries usually buy energy from a licensed supplier, and then sell it on to the end users. |
Constituency casework: Government support for energy bills (454 KB , PDF)
Improving energy efficiency can help reduce energy bills, cut carbon emissions and improve energy security. How is the UK doing with efforts to increase energy efficiency?
The Water (Special Measures) Bill was introduced in the House of Lords on 4 September 2024, and was amended at committee stage and report stage. It was introduced in the House of Commons on 27 November 2024, and its second reading is scheduled for 16 December 2024. The bill is intended to address poor performance from water companies.
Typical household energy bills increased by 54% in April 2022 and 27% in October 2022. Lower wholesale prices have led to falls in prices, but bills remain around 29% above their winter 2021/22 levels.